PPMT Function
The Excel PPMT function is used to calculate the principal payment made in a period of an investment. Where as IPMT calculates the interest paid in a period of an investment, PPMT relates to the amount paid that comes of the balance.
The syntax for the PPMT function is:
=PPMT(rate, per, nper, pv, [fv], [type])
Argument 
Purpose 

rate 
The interest rate per period 
per 
The period for which you want to find the principal amount paid. It must be entered in the range 1 to nper 
nper 
The number of payment periods during the lifetime of the loan. If payments are monthly for 5 years, this would be entered 5*12 to calculate 60 payment periods 
pv 
The present value, or current amount of the loan or investment. 
fv 
The future value, or amount after the last payment is made. FV is optional and if omitted the value is assumed to be 0 i.e. the future value of a loan will be 0 
type 
When the payments are due. It can be entered as 1 or 0 and is optional. If omitted the value is assumed to be 0

The examples below show the PPMT function being used to return the amount paid as principal on a loan using different parameters.
Function 
Result 

=PPMT(C4/12,D4*12,B4*12,A4) 
£405.84 Amount paid as principal in the January of the 5th year of a 20 year loan 
=PPMT(C4,D4,B4,A4,0,1) 
£4,482.36 Amount paid as principal in the 5th year of a 20 year loan, with a future value of 0 and payments made at the beginning of each year 
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